SchwabI hope it stands for integrity and a mission
to serve the client. In our vision statement we say our aspiration
is to be the most ethical brokerage in the country.

We also want to be useful to our customers. When we come out with a
new service, we hope it is highly useful to our customers, not just
a newfangled deal where we can make money. Look at everything we've
offered over the years. It always comes down to how can we serve
our clients better? I think that's been the success of Schwab;
that's how we went from having a handful of customers in 1973 to
having 7.6 million now. That demonstrates that when you provide a
useful service, backed up by an ethical way of delivering the
service, you will attract customers.

American Way As baby boomers come closer
to retirement age, do you see their interest in things financial
escalating?

Schwab I fear for the baby boomers. The worry is
that Social Security won't be adequate to take care of your needs.
There's an alternative, and that's to save and invest to supplement
Social Security.

The government has set up various possibilities such as 401(k)s and
IRAs. At some point in your life, you will have to rely on your
investments to live. For most people, Social Security is not
enough. You and your spouse probably could not survive on $1,200
monthly. That's what Social Security would pay you when you are 65.
I know. I'm there [chuckles].

American Way Are you collecting Social
Security?

Schwab No, I haven't applied for it yet. I'm
thinking about it if the market gets any lower [laughs]. But this
is a huge national issue. It's something the government is working
on, and we as a financial services business are trying to do a
better job of helping people take their hard-earned income and get
some success in their investing.